Which of the following are examples of leakages?
a. government purchases, net taxes and imports
b. government purchases, exports and investment spending
c. net taxes, household saving and imports
d. net taxes, investment spending and exports
e. net exports, investment spending and net taxes
C
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How does an increase in expected profit affect investment demand and the demand for loanable funds curve?
What will be an ideal response?
Refer to the following graph. Which of the following statements is true?
a. When output is zero losses equal TFC.
b. At the Break-Even Point marginal revenue equals marginal cost.
c. Any output below the Break-Even Point indicates profits are earned.
d. When Total Revenue equals Total Cost profits are maximized.
The nation of Farmland forbids international trade. In Farmland, you can exchange 1 pound of beef for 2 pounds of pepper. In other countries, you can exchange 1 pound of beef for 4 pounds of pepper. These facts indicate that
a. Farmland has a comparative advantage, relative to other countries, in producing beef. b. other countries have an absolute advantage, relative to Farmland, in producing beef. c. the price of beef in Farmland exceeds the world price of beef. d. if Farmland were to allow trade, it would export pepper.
Entry into a market characterized by monopolistic competition is generally
A. Entirely blocked by existing firms. B. More difficult than entry into monopolized markets. C. As difficult as in oligopoly. D. Very easy because few barriers exist.